LGIAsuper Taps into Changing US Food Tastes
By: Hannah Wootton
As demand for fresh food grows in America, LGIAsuper has sought to capitalise on the health trend by becoming one of the first institutional investors to back a strategy to supply produce across the States.
The super fund committed $112 million to Equilibrium Capital Group’s newest fund, which focused on fresh food production in North America, at the same time as announcing a partnership with leading American vegetable grower, The Houweling’s Group.
Houweling’s greenhouses grow sustainable tomatoes and cucumbers year-round and were strategically position across the US to meet leading retailers’ needs.
LGIAsuper chief executive, Kate Farrar, said the investments gave Australians the opportunity to be part of the growth potential of American households’ changing tastes.
“Australians who have visited the United States often comment that the fresh produce doesn’t taste as fresh as it does at home,” she said. “Fruit and vegetables in the US have traditionally been imported from as far away as Mexico or shipped long distances across the US, which reduces freshness and impacts taste.
“Consumers today are demanding a higher standard of freshness and flavour and unique varieties that can only be grown in greenhouses. With more than 325 million residents in the United States this represents a huge growth opportunity for investors.”